Edun Reassures Stockbrokers on Balanced Capital Gains Tax Implementation in Nigeria
The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, has reassured stockbrokers and investors that the planned Capital Gains Tax (CGT) in Nigeria will be implemented with the country’s best interest in mind. Speaking at the Closing Gong Ceremony for the listing of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) Series 2 on the Nigerian Exchange (NGX), Edun emphasized that consultations with stakeholders would guide a balanced approach to the tax.
Stakeholders in the Nigerian capital market had raised concerns that the new CGT, set to take effect in January 2026, could deter foreign investment and slow equity market activities. The tax applies to profits from the sale or disposal of shares and other equity instruments, with rates increasing from 10% to 30% for large companies. For individuals, CGT will align with progressive income tax bands, while the exemption threshold for share sales has been raised from N100 million to N150 million in any 12-month period, provided gains do not exceed N10 million.
Edun highlighted the broader benefits of market participation for ordinary Nigerians through instruments like MREIF Series 2. “At N100 per unit, MREIF allows ordinary Nigerians to participate in savings and investment, leveraging local resources to grow our economy, especially in the housing sector,” he said. The fund aims to bridge Nigeria’s housing deficit by providing long-term, low-cost mortgage financing while offering developers off-take guarantees to accelerate construction.
The NGX leadership also stressed the importance of investor confidence in policy design. NGX Group CEO Temi Popoola stated, “The capital market is not only a platform for attracting investment but also a tool for creating wealth for Nigerians. Policies such as the capital gains tax must balance government revenue objectives with market growth.” NGX Chairman Ahonsi Unuigbe called the MREIF listing a defining step toward transforming Nigeria into a leading economy with shared prosperity.
Market veterans welcomed Edun’s assurances. Sam Ndata, a doyen of the Nigerian capital market, noted that the market had experienced volatility amid CGT discussions. “This market is very sensitive,” he affirmed. Edun concluded by affirming the government’s commitment to listening, analyzing, and consulting with stakeholders to ensure the Capital Gains Tax in Nigeria achieves optimal outcomes for both investors and the national economy.
source: punch